The UAE Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)
Description
The UAE Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)
Summary
GlobalData expects that the UAE’s construction industry to grow by 5.2% in real terms in 2025, supported by investments in energy and utilities, transportation, and power projects. The growth is also aided by the government’s allocation under the 2025 Budget that includes expenditure of AED71.5 billion ($19.5 billion), an increase of 11.6% compared to AED64.1 billion ($17.5 billion) expenditure earmarked in the 2024 Budget. Moreover, the fourth quarter of 2025 is estimated to be supported by the ongoing construction of new major projects. For instance, Indian construction company Rana Group commenced the construction works of Erisha Smart Manufacturing Hub project with an investment of AED36.7 billion ($10 billion) in Ras Al Khaimah Economic Zone in early-September 2025.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth rate of 4% from 2026 to 2029, supported by an improvement in the budgetary allocation under 2026 Budget, coupled with investments in transport, manufacturing and housing projects. The UAE’s Cabinet approved the federal budget for 2026 in late-October 2025 as part of the 2022-2026 Federal General Budget Plan. The budget includes expenditure of AED92.4 billion ($25.2 billion), an increase of 29.2% compared to AED71.5 billion ($19.5 billion) expenditure earmarked in the 2025 Budget. Expansion of businesses in the coming years is expected to bolster as part of National Agenda for Entrepreneurship that aims at establishing the UAE to be the entrepreneurial nation by 2031. This involves 29 initiatives aimed at promoting business environment in the UAE which can spark investments for the expansion of industrial buildings across the Emirate. Forecast period growth for the construction industry will also be supported by the National Investment Strategy 2031. It involves a target of increasing the inflow of annual Foreign Direct Investment (FDI) to AED238.7 billion ($65 billion) by 2031, compared to AED167.5 billion ($45.6 billion) in 2024.
GlobalData’s Construction in the UAE - Key Trends and Opportunities to 2029 (Q4 2025) report provides detailed market analysis, information, and insights into the UAE’s construction industry, including -
This report provides a comprehensive analysis of the construction industry in the UAE. It provides -
Summary
GlobalData expects that the UAE’s construction industry to grow by 5.2% in real terms in 2025, supported by investments in energy and utilities, transportation, and power projects. The growth is also aided by the government’s allocation under the 2025 Budget that includes expenditure of AED71.5 billion ($19.5 billion), an increase of 11.6% compared to AED64.1 billion ($17.5 billion) expenditure earmarked in the 2024 Budget. Moreover, the fourth quarter of 2025 is estimated to be supported by the ongoing construction of new major projects. For instance, Indian construction company Rana Group commenced the construction works of Erisha Smart Manufacturing Hub project with an investment of AED36.7 billion ($10 billion) in Ras Al Khaimah Economic Zone in early-September 2025.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth rate of 4% from 2026 to 2029, supported by an improvement in the budgetary allocation under 2026 Budget, coupled with investments in transport, manufacturing and housing projects. The UAE’s Cabinet approved the federal budget for 2026 in late-October 2025 as part of the 2022-2026 Federal General Budget Plan. The budget includes expenditure of AED92.4 billion ($25.2 billion), an increase of 29.2% compared to AED71.5 billion ($19.5 billion) expenditure earmarked in the 2025 Budget. Expansion of businesses in the coming years is expected to bolster as part of National Agenda for Entrepreneurship that aims at establishing the UAE to be the entrepreneurial nation by 2031. This involves 29 initiatives aimed at promoting business environment in the UAE which can spark investments for the expansion of industrial buildings across the Emirate. Forecast period growth for the construction industry will also be supported by the National Investment Strategy 2031. It involves a target of increasing the inflow of annual Foreign Direct Investment (FDI) to AED238.7 billion ($65 billion) by 2031, compared to AED167.5 billion ($45.6 billion) in 2024.
GlobalData’s Construction in the UAE - Key Trends and Opportunities to 2029 (Q4 2025) report provides detailed market analysis, information, and insights into the UAE’s construction industry, including -
- The UAE’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UAE’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in the UAE. It provides -
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in the UAE, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
46 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: The UAE, Key Economic Indicators
- Table 3: The UAE, Commercial Construction Output by Project Type (Real % Change), 2020–29
- Table 4: The UAE, Top Commercial Construction Projects by Value
- Table 5: The UAE, Industrial Construction Output by Project Type (Real % Change), 2020–29
- Table 6: The UAE, Top Industrial Construction Projects by Value
- Table 7: The UAE, Infrastructure Construction Output by Project Type (Real % Change), 2020–29
- Table 8: The UAE, Top Infrastructure Construction Projects by Value
- Table 9: The UAE, Energy and Utilities Construction Output by Project Type (Real % Change), 2020–29
- Table 10: The UAE, Top Energy and Utilities Construction Projects by Value
- Table 11: The UAE, Institutional Construction Output by Project Type (Real % Change), 2020–29
- Table 12: The UAE, Top Institutional Construction Projects by Value
- Table 13: The UAE, Residential Construction Output by Project Type (Real % Change), 2020–29
- Table 14: The UAE, Top Residential Construction Projects by Value
- Table 15: The UAE, Key Contractors
- Table 16: The UAE, Key Consultants
- Table 17: The UAE, Construction Output Value (Real, $ Million)
- Table 18: The UAE, Construction Output Value (Nominal, AED Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2023–29
- Figure 2: The UAE, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 3: The UAE, Risk Summary
- Figure 4: The UAE, Risk Regional Comparison
- Figure 5: The UAE, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 6: The UAE, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 7: The UAE, Construction Value-Add (AED Million, in 2010 Constant Prices)
- Figure 8: The UAE, Total Bank Credit to Construction and Real Estates (AED Million)
- Figure 9: The UAE, Total Construction Cost Index (2021=100)
- Figure 10: The UAE, Construction Projects Momentum Index
- Figure 11: Region, Construction Projects Momentum Index
- Figure 12: The UAE, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 13: The UAE, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 14: The UAE, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 15: The UAE, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: The UAE, Infrastructure Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 17: The UAE, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: The UAE, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 19: The UAE, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 20: The UAE, Institutional Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 21: The UAE, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: The UAE, Residential Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 23: The UAE, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: The UAE, Hedonic Property Price Index
- Figure 25: The UAE, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 26: The UAE, Headquarters of Key Consultants (% of Total Project Pipeline)
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